How much does third-party maintenance cost?

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Third-party Maintenance (TPM) accomplishes for your Data Center what OEM Service fails to do. TPM provides Maintenance Strategies for your Data Center Equipment that is economical and Customized to your needs. On the other hand, Original Equipment Manufacturer (OEMs) focus on replacing your equipment with seemingly "better" ones, even if your old equipment can continue to serve for at least 3 to 7 more years. TPMs ensure maximization of the Hardware Lifecycle and Next Business day (NBD) Delivery of Spare Parts and Services. With superior service and prompt response to your Data Center issues, TPM is the clear winner in the Equipment Maintenance Business.

While saving a lot of money on Maintenance, it is crucial to address the question:

How much does Third-party Maintenance Support cost?

What are the factors on which TPMs base their Service Costs? Continue reading to find out

Brand of Equipment:

According to a Technogroup Study, about 78% of Companies with Data Centers employ Hardware from numerous Manufacturers. 31% of those Companies have Components from two to five Manufacturers, while 47% use between five and seven Manufacturers. The Service Costs vary according to the Brand. For instance, CISCO Equipment Parts are costlier than those for NetApp. Thus, the Maintenance Cost will vary.

Model of Equipment:

After you have your Equipment Brand figured out, you need to consider the Hardware's Model as well. It is essential to consider the type of Hardware, Server, Storage Array, Switch etc. In addition, you must consider their position in the Manufacturer's Hardware hierarchy. Higher the tier of equipment, the costlier the Maintenance and Repair.

Configuration of Hardware:

Your Data Center Hardware is composed of different Components which work together for a specific purpose. These components can include CPUs, Power Supplies, SSDs, Controllers , Hard Drives etc. Each of these Components is essential for making an Asset function. However, replacing each of these while retaining the larger Asset can be expensive. For instance, Storage Arrays have multiple Hard Drives / SSDs and can be costly to maintain.

Service Level Agreement:

TPM Providers enlist every Support and Maintenance requirement and the price of each of those in Service Level Agreements or SLAs. It is always advised to read the SLA thoroughly as it can also mention any exclusion and hidden costs. Every SLA differs in expenses and service level that will directly affect your Maintenance and Repair Costs.

Location of the Data Center:

Knowing your distance from your TPM's site is vital. This will significantly determine the expenditure on Spare Parts Shipping and the time for Parts to arrive. Suppose your Data Center is located in a less accessible Location which makes it inconvenient to reach, you might have to incur additional costs for Service.

Number of Equipment:

It is a given that more the Hardware to get serviced by TPMs, the higher the expenses will be. While for every piece of equipment, the OEMs are different, it is best to have only one TPM Service for all your Data Center equipment. This mitigates any chances of confusion when there is a malfunction, a logistical problem or a Data Breach. Sticking to one TPM Provider also ensures more savings in Data Center Support Services.

Length of Contract:

Contracts valid for three years or more involve lower transaction costs because they need to be agreed on less often. TPMs usually offer additional discounts on Long-term Agreements. On the other hand, six months or under Agreements are costlier. This is simply because the transaction costs, fees and time on behalf of account executives are the same whether you enrol for one month or one year. However, the short term is less profitable for TPMs. Thus, they offset those Costs by charging more in Short-term Agreements.

Get the best price for Third-party Services

It would be best if you researched various TPMs and the Clients that they have served so far to understand their services well. It pays to do this background check since IT Expenditure is like an Investment, not a one-time thing. You can start by knowing the location of TPM. You should have detailed information about equipment age, parts, make/model, serial number, last service date and other important information.

Next you should determine which Asset needs to be terminated and which must be retained after consolidation. Once you understand what Assets you need to use and maintain, you will have better control over Maintenance Pricing.

Finally, any particular service you demand must be mentioned before forming an Agreement. There can be many Services that you might require separately. Suppose you need Services such as 24/7 Monitoring, On-site Spare Parts Delivery, Co-terming (Combining different Assets in the same Contract), in such case, they must be mentioned in the Agreement. Knowing your requirements can help you compare TPMs better.

Choose thomastech: Your Professional Network Third-party Support Company

Our IT savvy team of Professionals reconfigure your IT Systems, Optimize existing Assets, Upgrade Security, Provide Ongoing Maintenance. Implement Upgrades etc. These Services increase your Organization's Data Center efficiency without burning a hole in your pocket. With our customizable SLAs,you get the service you want for your Data Center.

Visit the thomastech website to learn more about how our engineers improve your Data Management, Reduce Costs and create a more efficient and secure environment.

Takeaways from the Article

Third-Party Maintenance (TPM) Costs

The article emphasizes that the cost of Third-Party Maintenance (TPM) varies based on several factors such as equipment age, type, and location. Different TPM providers also offer various service levels affecting the cost.

Comparison with OEM Maintenance

TPM is presented as a cost-effective alternative to Original Equipment Manufacturer (OEM) maintenance. It can save businesses up to 30-70% compared to OEM service contracts.

Customization and Flexibility

TPM providers offer more customized and flexible service options compared to OEMs. They provide services that are tailored to meet the specific needs and demands of a business.

Quality of Service

The quality of service provided by TPMs is highlighted, ensuring that businesses receive reliable and efficient services to keep their hardware running smoothly.

Assessing the Best Option

The article concludes by advising businesses to assess and compare the costs and benefits of TPM against OEM maintenance to choose the best option for their needs.

Reminder of the Post’s Main Point

The article focuses on the cost aspects of Third-Party Maintenance (TPM), comparing it with OEM maintenance, and highlighting the benefits such as cost savings, customization, and quality of service.

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